PT Bank Mandiri (Persero) Tbk
1Q 2014
Results Presentation
Share Information
∆ fro : IPO Dec 31, 2013
BMRI + 1,323.19% +20.38% JCI + 808.78% +11.56%
No. of
Investor % No. of shares %
I DOMESTIC
1. Government of RI 1 0.01% 14,000,000,000 60.00% 2. Retail 12,500 74.21% 217,000,431 0.93% 3. Employees 2,277 13.52% 41,867,318 0.18% 4. Cooperatives 6 0.04% 2,735,056 0.01% 5. Foundation 25 0.15% 17,037,728 0.07% 6. Pension Funds 181 1.07% 202,693,520 0.87% 7. Insurance 64 0.38% 485,661,436 2.08% 8. Banks - 0.00% - 0.00% 9. Corporations 120 0.71% 244,427,060 1.05% 10. Mutual Funds 180 1.07% 719,592,605 3.08%
Total 15,354 91.15% 15,931,015,154 68.28%
II INTERNATIONAL
1. Retail 80 0.47% 1,523,733 0.01% 2. Institutional 1,411 8.38% 7,400,794,446 31.72%
Total 1,491 8.85% 7,402,318,179 31.72%
III TOTAL
No. Description
By 31 March 2014
16,845
2
Bank Mandiri Presentation Contents
Results Overview Page #
I do esia s E o o i Co ditio 3
1Q 2014 Highlights 4
Key Indicators + Financial Highlights 5-6
SBU Performance Highlights 7
Ba k s Pe fo a e 8-11
Loan Performance 12-14
ROE & NIM 15-16
Fee-Based & CIR 17-18
Wholesale Transactions 19-21
Retail Value Chain 22-26
High-Yield Lending Activities 27-29
NPL Movement 30-33
Subsidiaries 34-37
Targets & Initiatives 38-40Early Signs of Economic Condition Improving, Risks Remain
Source: BPS, Bloomberg
Trade balance back to surplus at USD785 mn
I t l ese es i p o ed to U“D102.6 bn, Mar 2014
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Trade Balance - RHS Export - LHS
Import - LHS
Cash Management
•
13,162 Customers
•
8.0 Mn Tx YTD
2014
(2)4
Ba k Ma di i e ai s o t a k to e o e I do esia s Most
Admired Financial Institution
Retail Loans
(1)•
Rp 131.9 Tn
•
31.8% of Loans
•
High yield loan
amounting Rp 85.6 Tn
Subsidiary Income
•
Total Rp 639 Bn
•
Sum of income from
6 subsidiaries
(13.0 % of EAT)
Alliances (total)
•
Alliance Payroll
Accounts: 1.16 Mn
e-Channel Tx
•
369.7 Mn YTD
•
16.4% Growth
# of Cards Issued
•
Credit 3.27 Mn
•
Debit 11.59 Mn
•
Prepaid 3.65 Mn
(1) Small Business, Micro and Consumers (2) Exclude Mandiri Transaction System
# of Accounts
•
Deposit 14.85 Mn
•
Loan 1.39 Mn
including mortgage
account of 172,109
# of new Accounts (YTD)
•
Deposit 1.56 Mn
•
Loan 172,030
Key Financial Highlights
Ba k Ma di i s Q
Pe fo
a e de o st ated a ked i p o e e ts
across several key indicators:
Q
Q
%
Loans
Rp391.6tn
Rp470.4tn
20.1%
Net NPL Ratio
Gross NPL Ratio
0.57%
2.08%
0.67%
2.07%
17.5%
(0.5%)
Low Cost Funds Ratio
[Low Cost Funds (Rp)]
62.1%
Rp290.2tn
63.0%
Rp334.7tn
1.3%
15.3%
NIM
5.38%
5.75%
6.9%
Efficiency Ratio
41.1%
41.8%
1.8%
Earnings After Tax
Rp4,303bn
Rp4,925 bn
14.5%
Balanced Earnings from All Business Units
19.82%
16.26%
32.06%
17.39%
4.35%
5.30%
29.01%
54.90%
14.76%
6.16%
6.69%
8.91%
14.51%
10.81%
32.26%
33.36%
37.13%
36.88%
9.40%
10.04% NII (Net Interest Income)
(Rp bn) % of Total
Fee Income
(Rp bn) % of Total
Asset Spread
(Rp bn) % of Total
Liabilities Spread
(Rp bn)
1,192
1,928
262
1,745
888 1,293
1,383
421
4,367
490
Corporate + Institutional
Comm & Business Banking
Treasury, FI & SAM*
Micro & Retail
Consumer Finance
Q1 '12 Q1 '14
950
1,756
186
669
885 792
1,227
375
845
480
Q1 '12 Q1 '14
242
173
75
1,076
4 501
156
47
3,522
10
Q1 '12 Q1 '14
21.37%
21.30%
39.48%
33.00%
4.19%
10.07%
15.05%
22.72%
19.90%
12.91%
178
386
858
987
250 1,082
325
660
1,109
302
Q1 '12 Q1 '14
7
*Rp 343Bn from SAM recoveries on W/O loans
82.8 88.8 93.7 97
.1
97.1 102.9 108.8 121.9 119
.8
126
.5
135.4 151.8 150
.4
159.9 166.2 186.9 179.9 189.8 198.8
214
.7
201.9
8.2 8.38.7 9.7 9.9
10.811.611.612.312.7 12.212.013.4 13.614.0 15.315.816.819.0 20.7 22.1
44.5 47.3 45
.7
53.9 47.8 50.3 39.9
46.2 45.3 47
.9
49.4
67.3 75.0 59.0 63.0
77 .9 61.2 74.6 63 .9 73.4 67.2 20.318.321.1 18.822.023.122.9 22.225.422.324.0 25.328.228.028.5 36.1 33.338.5 49.2 51.1 43.5 99.6 105.7
109.3 108.4 124
.4 127 .8 127.0 147.8 143 .5 140.8 140.0
148.1 120.8 137.5 138.9
150 .7 152.8 153.7 155.2 176.2 176 .9 16.718.7 17.115.1 11.811.711.1 12.510.312.415.3 17.8 15.620.3 20.4 16.1 24.0 29.028.2 20.1 20.0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 520 540 560 1Q '09 2 Q' 09 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4Q '10 1 Q' 11 2Q '11 3Q '11 4Q '11 1Q '12 2 Q' 12 3 Q' 12 4Q '12 1Q '13 2 Q' 13 3Q '13 4Q '13 1Q '14
FX Time Rp Time FX Demand Rp Demand FX Savings Rp Savings
64.1 65
.8
68.8 69.8 74.5 80.7 84
.2
85
.4
85.1 96
.2
103.2 106.2 113.0 119
.2
123.2 126.3 124.7 124.3 130.9 138.8 131.8 4.4 4.4 4.2 4.50.2 0.4
1.3 1.4 1.61.5
1.7 1.41.3 1.5
1.6 1.8 1.6 1.51.72.0 2.3 40.6 41
.9
43.6 49
.1
49.1 53.1 57.5
63.8 64.7 70.1
74.7 80.7 82.5
89
.8
93.3 102
.7
102.0 104.2 111.0
116
.9
116.3
19.7 20
.6
21.7 23.6 24.7 26.7 28.6
30
.7
32
.4
34.3 36.3 39.0 40.7
43.3 44
.5
47.7
49.3 52.4 55.2 56.6 57.4 14.115.516.3 17.117.7 19.3 20.522.723.3 25.8 27.630.2 30.9 33.135.0 38.4 38.4 42.5 43.7 46.5 46.3
4.6 4.85.1 5.4 5.6 6.06.5 7.3 7.7 8.5 9.5 11.813.1 15.116.8 19.0 20.7 23.9 24.927.028.2 12.611.511.2 10.39.7 9.18.6 7.8 6.7 6.1 6.1 4.64.8 4.84.9
4.0 3.93.9
4.24.2 3.9 22.6 24.3 25.0 29.0* 16.817.117.6 18.820.4 22.724.6 27.230.3 34.2 38.4 40.540.9 43.6 46.0 48.950.9 53.5 54.9 55.5 55.3 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 1Q '09 2 Q' 09 3 Q' 09 4Q '09 1 Q' 10 2Q '10 3Q '10 4Q '10 1 Q' 11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2 Q' 13 3 Q' 13 4Q '13 1 Q' 14 Subsidiaries Inst SAM Micro
Small Cons
Comm Int'l
Corp
Maintaining momentum for growth
Y-o-Y (16.6%) 15.7% 30.6% 9.8% 12.2% Y-o-Y 36.4% 20.4% 16.3%
Loans by SBU + Subsidiaries
(Rp Tn)
14.0%
5.7%
Deposits by Product –
Consolidated
(Rp Tn)
*Previously booked in Corporate Banking
**Loans from Treasury & International have been reallocated to Corporate following the reorganization in early 2010
Total Wholesales Fees Rp1.1Tn1)
Total Wholesale Low Cost Deposits Rp77.3Tn
Growth of Tx cash management 58.5% YoY2)
Total Retail Fees of Rp1.5 Tn1)
Total Retail Low Cost Funds Rp241.8Tn
YoY increase in # of E-channel transaction: 16.4%
Total Retail Loans of Rp131.9 Tn
Assets Spread Rp1.8 Tn
31.8% of total loans
Pillar 1
Pillar 2
Pillar 3
1) Fee-Based Provision, Commission & Fee 2) Excluding Mandiri Transaction System
Good Progress On Our 3 Strategic Priorities:
Wholesale Transactions, Retail Payments & High Yield Loans
9
Strengthen leadership in wholesale
transaction banking
Comprehensive financing & transaction solutions
Holistic relationship approach for leading Indonesian institutions
Build #1 or #2 positions in key retail
financing segments
Win in mortgage, personal loan & cards
Become a major player in micro-banking
Champion Syariah in Indonesia
Be the retail deposit bank of choice
Strong and liquid balance sheet
Assets *
1Q 2014
1Q 2013
Liabilities
1Q 2014
1Q 2013
Cash
14,501
11,681
Current Account
110,738
94,524
Current Acc w/ BI & Other Banks
60,149
63,157
Savings
223,970
195,665
Placement w/ BI & Other banks
33,183
38,959
Time Deposits
196,903
176,827
Advances (Other)
21,340
14,761
Marketable Securities
30,945
14,003
Total Deposits
531,611
467,017
Government Bonds
90,649
79,234
Loans (Gross)
470,423
391,641
Securities Issued
1,773
1,504
Provisions of Loans
(16,630)
(14,459)
Deposits from other banks
24,535
28,942
Net Loans
453,793
377,182
Borrowings
15,125
11,786
Reverse Repo
778
7,888
Other Int. Bearing
Liabilities
11,786
9,134
Other Provisions
(2,015)
(1,641)
Non Int. Bearing Liabilities
55,613
41,181
Deferred Tax Assets
3,755
3,542
Equity incl. Minority
Interest
89,041
81,034
Other Assets
22,405
31,832
Total
729,483
640,599 Total
729,483
640,599
(Rp Bn, Consolidated)
Solid Revenue Growth
11
Summary P&L
Q1 2014
(Rp Bn)
Q4 2013
(Rp Bn)
Q1 2013
(Rp Bn)
Y-o-Y
∆ ℅
Q-o-Q
∆ ℅
Interest Income
14,313
14,411
11,402
25.5%
(0.7%)
Interest Expense
5,333
5,052
3,946
35.1%
5.6%
Net Interest Income
8,980
9,359
7,455
20.5%
(4.0%)
Net Premium Income
584
605
610
(4.3%)
(3.4%)
Net Interest Income & Premium Income
9,564
9,963
8,066
18.6%
(4.0%)
Other Non Interest Income
* Other Fees and Commissions
2,130
2,606
1,861
14.4%
(18.3%)
* Foreign Exchange Gains - Net
404
347
226
78.9%
16.5%
* Gain fr. sale & Incr. in Val & Sale of Bonds
158
(3)
46
244.7%
n/a
* Others
835
1,226
1,140
(26.7%)
(31.8%)
Total Non Interest Income
3,528
4,176
3,273
7.8%
(15.5%)
Total Operating Income
13,092
14,140
11,339
15.5%
(7.4%)
Provisions, Net
(1,217)
(851)
(1,089)
11.8%
43.0%
Personnel Expenses
(2,626)
(2,374)
(2,042)
28.6%
10.6%
G&A Expenses
(2,309)
(3,167)
(2,034)
13.5%
(27.1%)
Loss from decr. in value of Sec & Gov Bonds
-
-
-
n/a
Other Expenses
(476)
(767)
(566)
(16.0%)
(38.0%)
Total Expense
(5,411)
6,309)
(4,642)
16.6%
(14.2%)
Profit from Operations
6,463
6,979
5,608
15.3%
(7.4%)
Non Operating Income
(4)
334
42
(110.5%)
(101.3%)
Net Income Before Tax
6,459
7,313
5,650
14.3%
(11.7%)
LDR increased to 88.0%, Bank-only loan growth of 21.9%
175.2 181
.6
188.3 198.5 201.9 218.0 231.9 246.2 251.8 276.7 297
.5
314
.4
327.2 350
.4
365.2 388.8 391.6 428
.7
450.8 472.4 470.4
63.2% 62.2% 62.8% 61.4% 64.1% 66.3% 71.7% 67.6% 70.2% 75.9% 78.7% 74.1% 80.7% 83.4% 84.4% 80.1% 83.5% 85.0% 87.3% 84.5% 88.0% 1 Q '09 2 Q '09 3Q '09 4 Q '09 1Q '10 2Q '10 3Q '10 4 Q' 10 1Q' 11 2Q' 11 3Q' 11 4Q' 11 1Q' 12 2Q' 12 3Q' 12 4Q' 12 1 Q' 13 2 Q' 13 3Q' 13 4 Q' 13 1Q' 14
Loans (Rp tn) LDR (%)
1.4%3.7%3.7%
5.5%
1.7%7.9% 6.4%
6.2% 2.3% 9.9% 7.5% 5.7% 4.1% 7.1% 4.2% 6.5% 0.7% 9.5% 5.1% 4.8% -0.4% 30.5% 21.4% 15.7% 13.8% 15.3% 20.0% 23.2% 24.0% 24.7% 26.9% 28.3% 27.7% 30.0% 26.6% 22.8% 23.7% 19.7% 22.3% 23.4% 21.5% 20.1% 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2 Q '10 3 Q '10 4Q '10 1 Q' 11 2Q '11 3Q '11 4Q '11 1 Q' 12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14
QoQ Growth (%) YoY Growth (%)
Quarterly Loan Data
(Consolidated)
78.8 79
.7
82.0 82.7 82.9 88.7 92.8 93
.6 92.5 103 .1 1 1 0 .4 111 .7 118. 6 125. 2 129 .3 131. 7 129. 9 151. 9 153. 5 169. 7 166. 7
42.6 43.6 45
.3
50.6 50
.4 54.2 58
.6
64.7 64.5
70
.7 75.3 81
.1 82.9 90.1 93.6
1 0 3 .0 102. 3 104. 4 118 .2 117. 1 116 .5 14.415.816.6 17.418.019.7 20.722.824.5 25.9 27.730.3 30.9 33.235.138.5 38.5 42.5 44.1 46.5 46.3
4.6 4.8 5.1
5.4 5.6 6.0
6.5 7.3 7.7 8.5 9.511.8 13.1 15.116.8 19.020.7 23.9 24.9 27.0 28.2 19.720.621.7 23.624.8 26.728.6 30.732.4 34.3 36.3 39.040.7 43.344.5 47.749.3 52.4 55.2 56.6 57.4 1 Q' 09 2 Q' 0 9 3 Q' 09 4 Q' 0 9 1 Q' 1 0 2 Q' 10 3 Q' 1 0 4 Q' 1 0 1 Q' 1 1 2 Q' 1 1 3 Q' 1 1 4 Q' 1 1 1 Q' 1 2 2 Q' 1 2 3 Q' 12 4 Q' 1 2 1 Q' 13 2 Q' 1 3 3 Q' 13 4 Q' 1 3 1 Q' 1 4
Corporate Commercial Small Micro Consumer
Quarterly Loan Segment Details
(Bank Only)
Y-o-Y 16.3% 36.4% 20.3% 13.9% 28.4% 21.9% Total 13.8% 6.8% 11.1% 28.1% 40.2% Break downAs of Mar 2014; Non-consolidated numbers
34 .56 35 .24 37 .83 36 .49 35 .64 31 .15 29 .19 29 .75 30 .62 33 .96 35 .68 38 .86 38 .60 41 .87 44 .44 40 .35 41 .88 45 .47 45 .73 49 .62 48 .17 53 .29 59 .79 67 .75 62 .22 104.5% 95.9% 111.0% 80.5% 78.3% 68.5% 61.9% 68.2% 71.7% 76.3% 80.7% 86.6% 82.9% 91.5% 89.0% 75.8% 76.0% 76.2% 75.4% 76.4% 68.0% 65.1% 64.3% 69.0% 72.0% 50% 60% 70% 80% 90% 100% 110% 120% Ma r 0 8 Sep 0 8 Ma r 0 9 Sep 0 9 Ma r 10 Sep 1 0 Ma r 11 Sep 1 1 Ma r 12 Sep 1 2 Ma r 1 3 Sep 13 Ma r 1 4 20 25 30 35 40 45 50 55 60 65 70
Loan Fx
LDR FX
Prudent Management of FX Balance Sheet
USD Billion
Rp Trillion (Bank Only)
Breakdown of FX lending (Bank Only)
Q
(Total USD 5.477 Bn)
0.01 0.13 0.20 0.24 0.29 0.31 0.34 0.65 0.76 1.23 1.31
Soc Serv
Constr
Utilities
Bus Serv
Trans
Oth
Agri
Trading
Mining
Oil & Gas
Mfg
% (YoY)
6%
-3%
29%
28%
-8%
267%
1%
-5%
-16%
31%
-45%
FX Loans & LDR
416.98
62.81
24.97
28.64
5.98 4.51
0.56
415.15
4Q'13 Disburs. Install. Payment Pay-off FX Impact
Write-Offs
1Q '14
33.29
15.09
4.96
5.73
3.74
62.81
Corporate Commercial Small Micro Cons Fin Total
Rp62.81 tn in loans disbursed in 1Q 2014
Loan Movement (Rp tn) –Bank Only Q1 (2014) Loan Disbursement by Segment in Q1(Rp tn) –Bank Only
42.6 58
.1
72
.5 91.9 108.9 115.9 112.2
134.0
172
.9
19
5.8
242
.4
352
.5
400.2
491.3 492.5
13
.3
15.4 17
.0
25
.5
27.5 27.4 28.4 28.3 27
.2
30
.5
35.7 53
.3
62
.0
73.9 79.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RWA (Rp tn) Total Capital (Rp tn) 31.3%
26.4%
23.4% 27.7%
25.3%
23.2%
24.6%
20.8%
15.7% 15.4%
13.4% 15.3%
15.5%
14.9% 16.2% CAR*
308 1,168 1,549 1,744
519 510 1,027 1,390 1,400 2,003
2,681 3,403 4,303 4,925 1,300
602 690 1,329
97 305
1,113 1,221 1,526 2,031
2,543 3,744 3,991
967 1,017
1,528 1,408
610 372 1,040
1,345 1,693
2,352 2,850
3,972 4,509
645 799
819 775
(623) 1,234
1,166 1,390
2,536 2,833
3,073 4,385
5,401
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Q4 PAT Q3 PAT Q2 PAT Q1 PAT
IDR bn
22.2% ROE, supported by a strong capital position
Bank Only - Capital & RWA Movement
Profit After Tax & ROE
21.5% 26.2%
23.6% 22.8%
2.5%
10.0%
15.8%18.1%
22.1%24.2%
22.0% 22.6%
22.2% 22.2% RoE - AT
• CAR inclusive of Credit and Market Risk started in December 2004
• CAR inclusive of Credit, Market and Operational Risk started in January 2010
• CAR under BASEL III in December 2013 was 16.7%
15
1,099*3.7% 4.3% 3.6% 4.9% 4.7% 5
.1
%
5
.5
%
6
.0
%
5.4% 5.5% 5.3% 4
.9
%
5.3% 5.1% 5
.2
%
6
.0
%
5
.8
%
5
.1
%
5.4% 5.2% 5.4% 5
.2
%
5
.5
%
5
.8
%
5.7% 5.5%
5
.3
%
5
.7
%
6.1% 5.9%
4 Q '03 4 Q '04 4Q '05 4Q '06 4Q '07 1Q '08 2Q '08 3 Q '08 4 Q '08 1 Q '09 2Q '09 3Q '09 4Q '09 1 Q '10 2Q '10 3Q '10 4 Q '10 1 Q '11 2Q '11 3Q '11 4Q '111Q'12 2Q'12 3Q'
12 4 Q' 12 1 Q' 13 2Q'13 3Q' 13
4Q'13 1Q'
14
NIM
9.5% 10.7% 9.3% 10.1% 10.7% 9.4% 9.6% 8.7% 8.7% 8.7% 8.2% 8.1% 8.4% 8.2% 8.1% 7.8% 8.3% 9.0% 9.0% 6.3% 4.8% 7.3% 6.4% 4.5% 3.8% 5.3% 4.9% 4.3% 3.9% 3.8% 3.4% 3.2% 2.8% 2.7% 2.7% 2.8% 2.6% 2.8%3.1% 3.3%
Yield on Assets Cost of Funds
1Q NIM of 5.9% as Yield on Assets Rises 01bps
Quarterly Net Interest Margins
Quarterly Yields & Costs by Currency
5.1% 5.3% 6.6% 5.8% 6.8% 6.5%
6.6% 5.8%6.4% 5.2% 5.2% 5.0% 7.2% 5.1%4.9% 4.7%
5.3%4.8%5.4% 5.0% 4.9% 4.8% 4.5% 5.1% 4.4% 4.0% 3.5% 3.4% 2.7% 2.6%3.0% 2.7% 2.3% 2.1%
1.5%0.7%0.8% 0.8% 0.7% 0.5% 0.3% 0.5% 0.6% 0.6% 0.6% 0.7% 0.7% 0.7% 0.6% 0.7% 0.8% 0% 5% 4Q '06 4Q '07 1 Q '08 2Q '08 3Q '08 4 Q '08 1 Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2 Q '10 3 Q '10 4 Q' 10
1Q'11 2Q'11 3Q'11 4Q'11 1Q'
12
2Q'12 3Q'12 4Q'
12
1
Q'
13
2Q'13 3Q'13 4Q'13 1Q'14
12.0%
11.2%11.1% 13.2%12.9% 12.9%
12.8% 12.6% 12.2%13.1% 12.7% 12.5% 11.8% 12.1% 11.9% 12.5% 11.4% 11.6% 11.8% 11.3% 11.2% 10.8% 11.1% 11.8% 11.8%
7.7%7.9% 9.2% 10.3% 10.6% 8.5% 7.2% 6.7% 6.8% 7.3% 6.5% 5.9% 4.1% 3.9% 3.3% 3.4% 3.9%
4.7%5.3% 5.4% 4.6% 4.5% 4.0% 4.6% 5.8%5.9% 5.3% 5.1% 4.4% 4.4% 4.3% 4.2% 4.3% 3.7%
3.0% 3.0% 3.0% 3.3% 3.7% 3.9% 0% 5% 10% 15% 20%
Avg Loan Yield Avg Bond Yield Avg COF
IDR
FX
…i to Fee
-based Income
Breakdown of 1Q 2014 Non-Loan Related Fees & Commissions (Rp Bn)
17
Non-Loan Related Fees & Commissions
1Q-2014
4Q-2013
1Q-2013
Y-o-Y
Q-o-Q
Δ
%
Δ
%
Administration Fees
644
863
519
24.2%
(25.4%)
Opening L/C, BG & Cap Market (custodian & trustee)
230
236
173
33.0%
(2.4%
Subsidiaries
379
419
389
(2.4%)
(9.5%)
Transfer, Retail Transaction
334
426
286
16.9%
(21.6%)
Credit Cards
291
297
265
10.0%
(2.1%)
Mutual Fund, ORI & Bancassurance
86
99
77
10.9%
(13.2%)
Syndications
24
31
13
87.9%
(22.1%)
Payroll Package
17
19
15
13.5%
(7.3%)
Others
132
216
124
5.8%
(38.8%)
Total
2,130
2,606
1,861
14.9%
(18.1%)
Foreign Exchange Gains
404
347
226
78.9%
16.5%
Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds
158
(3)
46
244.7%
n/a
Cash Recoveries
526
842
904
(41.8%)
(37.5%)
827 1,004 1,110 1,384 1,051 1,265 1,459 1,682 1,524 1,510 ,883 1 2,107 1,614 2,004 2,071 652,5 2,034 2,322 2,375 3,167 2,309
1
,116
1,3
90
1,0
19
1,3
28 1,3
06
1
,375
1
,485
1,6
12 1,5
47
1
,631
1,6
71
1,9
03
1,8
65
1,9
39
1
,869
2
,372
2
,042
2,3
36
2,6
79
2,3
74
2,6
26
1
Q
'09
2
Q
'09
3Q
'09
4Q
'09
1
Q
'10
2Q
'10
3Q
'10
4Q'10 1Q'
11
2
Q'
11
3
Q'
11
4
Q'
11
1Q'12 2Q'12 3Q'12 4Q'12 1Q'
13
2
Q'
13
3Q'
13
4Q'13 1Q'
14
G&A Expenses Personnel Expenses 35.1%
42.8%
39.3% 43.2%
39.0% 38.4%
38.1% 45.1%
32.4%
37.3%39.0%
41.6% 44.0%
43.2%
42.7% 51.3%
41.1% 43.1%
42.5% 44.6%
41.8% CIR (%)
Q1 Cost to Income Ratio of 41.8 %
Breakdown of 1Q 2014 Operating Expenses
Quarterly Consolidated Operating Expenses & CIR
18
Q1 2014 Q4 2013 Q1 2013Growth (%)
QoQ YoY
Personnel Expenses
Base Salary 688 623 529 10.5% 30.0%
Other Allowances 1,234 1,149 948 7.4% 30.1%
Post Empl. Benefits 100 18 80 451.4% N/A
Training 78 122 64 (35.9%) 22.1%
Subsidiaries 527 463 421 13.8% 25.2%
Total Personnel Expenses 2,626 2,374 2,042 10.6% 28.6%
G&A Expenses
IT & telecoms 330 329 276 0.2% 19.4%
Occupancy Related 444 716 412 (37.9%) 7.7%
Promo & Sponsor 206 417 202 (50.5%) 2.4%
Transport & Travel 125 199 116 (37.0%) 7.7%
Goods, Prof. Svcs. & Oth. 311 481 264 (35.2%) 18.1%
Employee Related 365 410 289 (11.1%) 26.0%
Subsidiaries 527 616 474 (14.5%) 11.2%
Breakdown of Net Expansion in Corporate Lending
Q
– Q
Total ‘p . t
Rp Billion
Di e sif i g ou st e gth i Wholesale le di g…
926 1,106 1,424
1,723 1,881 1,923 1,997 2,757 3,204 3,322 3,541 3,680 3,798
Trad-Exp Trad-Distr Trad-Ret Mfg-Metal Comm Mining-Oil & Gas Others Mining-Metal Ore Bus Serv Constr Mfg-Chem Electricity Plantations
%
12.14%
11.76%
11.32%
10.62%
10.24%
8.81%
6.38%
6.15%
6.01%
5.51%
4.55%
3.54%
2.96%
Rp Billion
Breakdown of Net Expansion in Commercial Lending
Q
– Q
Total ‘p . t
392 592 676 768 778 793 807 1,238 1,780 2,023 2,165 3,179 4,238
Others Trad-Imp Mfg-F&B Mfg-Text Constr Mining-Oil & Gas Mass Trans Mfg-Oth Mfg-Chem Mfg-Metal Mfg-RawM Bus Serv Trad-Distr
%
21.81%
16.36%
11.14%
10.41%
9.16%
6.37%
4.16%
4.08%
4.01%
3.95%
3.48%
3.05%
2.02%
Wholesale Transactions driving CASA higher
745 2,414
4,066 6,153
7,784 10,943
11,899
12,11212,366
12,652 12,932
13,162
2006 2007 2008 2009 2010 2011 2012 1Q13 2Q13 3
Q
13
4Q13 1Q14
Cash Management Users
Wholesale CASA Deposits
58
,05
5
62
,257
61
,69
1
53
,60
4
74
,11
6
89
,95
9
74
,334
71
,91
9
77
,31
6
-10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
2007 2008 2009 2010 2011 2012 2013 1Q
2013
1Q201
4
Total CASA (IDR Billion)
248 479 716 685 677 771 1,130 1,175 781,1 1,676 2,148 2,161 2,201 2,657
4
Q
10
1
Q
11
2Q11 3
Q
11
4Q11 1Q12 2
Q
12
3Q12 4Q12 1Q13 2Q13 3
Q
13
4Q13 1Q14
Average # of Cash Management Tx
(000), total 7.9 Mn transaction in
1Q2014
*)*) Exclude Mandiri Transaction System
20
58.5% YoY Growth 7.5% YoY
Growing Volume in Wholesale Transaction Business
Forex
34 42 63 61 13 16
281,153 310,512
322,795
399,500
111,728 115,460
-50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000
-10.0 20.0 30.0 40.0 50.0 60.0 70.0
Dec 10 Dec 11 Dec 12 Dec 13 1Q'13 1Q'14
Value (USD Billion) # of Trx
Wholesale Remittance
70 94 121 135 32 34
435,866 448,219
599,909 651,241
157,471 168,877
-100,000 200,000 300,000 400,000 500,000 600,000 700,000
-20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0
Dec 10 Dec 11 Dec 12 Dec 13 1Q'13 1Q'14
Value (USD Million) # of Trx
21
Mandiri Cash Management*
549 818 1,519 2,231 488 635
2,503
7,668
13,676
24,543
5,027
7,970
-5,000 10,000 15,000 20,000 25,000 30,000
-500.0 1,000.0 1,500.0 2,000.0 2,500.0
Dec 10 Dec 11 Dec 12 Dec 13 Mar 13 Mar 14
Value (IDR Trillion) # of Trx (000)
Trade Transaction : Export, Import, Domestic
*) Exclude Mandiri Transaction System
85 110 125 133 31 33
495,813 510,916 517,251
520,948
130,571 117,125
-100,000 200,000 300,000 400,000 500,000 600,000
-20.0 40.0 60.0 80.0 100.0 120.0 140.0
Dec 10 Dec 11 Dec 12 Dec 13 Q1 13 Q1 14
Retail Deposit rose by 24.5% Y-o-Y
Retail Deposit Analysis
–
Bank Only
2.5% 2.8%
4.2%
3.4% 3.3%
3.1% 2.5%2.3% 2.4%2.8%
2.0% 2.2% 2.0%2.0%
3.2%
3.0% 3.3%
2.5% 2.6%
2.1% 2.2% 2.4% 1.8%
1.5% 1.6% 1.5% 1.6% 1.5% 1.5% 1.6% 6.8% 6.3% 9.3% 9.5% 8.7% 7.2% 6.5% 6.9% 6.3% 6.5% 6.5% 5.7% 5.0% 4.9% 5.10% 4.90% 5.0% 5.5% 6.6% 7.0% 0% 5% 10% 15%
Rp DD Rp Savings Rp TD
Average Quarterly Deposit Costs (%)
2.4%
1.6% 1.8%
0.9% 0.9%
0.1% 0.1% 0.1%0.3%0.3%0.2%
0.2% 0.3% 0.3%0.3%
2.6% 2.9%2.8% 3.7% 3.9%
3.0%
1.9%
0.3% 0.5%0.5% 0.4% 0.8%0.8% 0.7% 0.7% 0.5% 0.6% 0.8% 0.8%1.2% 0% 2% 4% 1Q '08 2 Q '08 3Q '08 4Q '08 1 Q '09 2 Q '09 3Q '09 4 Q '09 1 Q '10 2Q '10 3Q '10 4 Q '10 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2 Q' 12 3Q '12 4Q '12 1 Q' 13 2 Q' 13 3Q '13 4 Q' 13 1 Q' 14
FX DD FX TD 63.5% 62.3% 61.4% 60.4% 62.5% 64.7% 63.4% 63.8% 66.1% 63.3% 63.8% 64.9% 66.1% 66.5% 69.6% 70.1% 72.5% 71.6% 73.0% 73.7% 71.9% CASA as % of total deposits
22
74
.6
78.8 74
.4
80.4 75.9 81
.3
86.3 95 .5 88.2 93.4
98.5 109
.6
107.3 11
2.7
120.4 134.0 132
.7
140.6 146
.1
165.0 157.5 166
.8
176.3 190
.9
179
.0
5.1 6.2 5.16.1 6.8 6.9
7.48.19.310.2
11.011.011.711.9 11.5 11.312.712.8 13.0 13.7 14.715.6 18.4 20.7 21.0
4.45.1 5.3 6.8 5.66.1
8.09.48.28.8
9.111.110.511.9 12.2 15.714.615.4 16.1 18.6 17.016.7 28.6 33.0 29.7 1.41.4
1.81.72.32.5
2.42.7 2.7 2.73.3
3.2 3.53.5 4.1 4.2 4.34.3 10.7 11.4 12.1 44.442.050.6 63.462.965.1 68.768.571.870.6 68.7 70.569.068.6 70.8 73.171.670.3 71.5 71.4 72.170.7 80.2 84.5 88.4
5.0 5.1 5.4
7.7 7.47.4
7.56.8 6.0 5.7 5.8
5.8 5.3 5.2 5.2
5.3 5.05.0 5.1 5.0 4.74.6 6.4 7.0 6.3 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 1 Q '08 2Q '08 3 Q '08 4 Q '08 1Q '09 2Q '09 3 Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4 Q' 10 1Q '11 2 Q' 11 3Q '11 4Q '11 1 Q' 12 2Q '12 3 Q' 12 4 Q' 12 1Q '13 2Q '13 3 Q' 13 4Q '13 1Q '14
…th ough e ha ed t a sa tio apa ilities
Quarterly Transaction Volume (Mn)
Quarterly Transaction Value (Rp tn)
Quarterly Users (Mn)
* Inactive cards have been purged
122.9 142.0 141.9 148.1 168.1 186.2 189.4 204.0 226.6 218.1 222.3 232.9 236.3 231.3 42.3
38.6 41.7 40.8
43.0 40.7
44.7 45.3
39.1 45.4 43.8
7.9 11.615.015.4 21.3 25.4 26.2 27.3 34.5 30.833.0 49.0 57.4
8.316.5 26.6 31.8 49.7 68.5 77.8 84.7 85.3 66.7 66.8 76.7 75.5 85.3 81.0 0 25 50 75 100 125 150 175 200 225 250 Q 1 '09 Q2 '09 Q3 '09 Q4 '09 Q 1 '10 Q2 '10 Q 3 '10 Q4 '10 Q 1 ' 11 Q2' 11 Q3 '11 Q 4 '11 Q1' 12 Q 2 '12 Q3 '12 Q4 '12 Q 1 '13 Q2 '13 Q3 '13 Q4 '13 Q 1 '14 ATM Branch SMS Banking Internet Banking 77.1 95.5 97.1 107.5 130.8 147.7 153.8 159.9 170.0 177.3 179.3 184.1 191.2 197.0 192.6
1.4 2.1 2.62.9 5.0 8.8 5.5 5.5 8.3 9.2 10.514.9 17.6
4.8 7.1 8.7
Retail Payment system gaining Traction
Fee Income from e-channel Tx (Bn)
24
23,69027,61133,732 47,127
92,903 180,532
230,352 240,468
2007 2008 2009 2010 2011 2012 2013 Q1
20
14
Numbers of EDC
52.1 89.4 126.2
200.3 258.2
315.2 347.6 414.7
65.5 98.5
166.6 196.5
285.7 318.6
382.0
81.9 110.5
194.5 249.3
313.9 361.8
437.5
89.0 117.8
223.7 268.5
312.8 464.4
512.9
2007 2008 2009 2010 2011 2012 2013 2014
Q4 Q3 Q2 Q1
19.3% YoY Growth
Volume Mandiri Business
Saving Account (Tn)
3.5 4.8 8.0
17.7 34.7
59.4 85.8
56.3 79.9
2007 2008 2009 2010 2011 2012 2013 Q1
2013
Q1
2014
Consistent Deepening of Retail Payment Business
B
ran
ch
A
TM
ED
C
In
te
rn
e
t
Ba
n
ki
n
g
Use
r
M
ob
il
e
Ba
n
ki
n
g
Use
r
Pr
epa
id
Strategy
Innovation of Our Strength
Expand and enhance existing channel
Develop innovative retail payment solutions
Develop integrated channel and marketing
strategies
Development of e-Money
(Gelang e-Money) using NFCtechnology
E-Cash
Drive transaction accountless
Mandiri Internet Bisnis
Offer retail payment solutions fortop retail value chain industry
25
U
n
it
U
n
it
T
h
o
u
san
d
s
U
n
it
Re
g. Us
e
r
in
Mi
lli
on
s
Re
g. Us
e
r
in
Mi
lli
o
n
s
Mi
lli
o
n
s
U
n
it
2,800
11,514
2006 Q1 2014
924
2,061
2006 Q1 2014
17.7
240.5
2006 Q1 2014
1.01
1.62
2010 Q1 2014
4.62 6.33
2010 Q1 2014
0.30
3.65
Making Inroads into SME and Retail Payments
# SME Business w/ Mandiri Acc
# MTB Transaction & Volume
26
Fiesta Point Program
A program to get points based on savings average balance and #of transactions through e-channel or branch, so that the Customer has the opportunity to earn immediate prizes.
Mandiri Belanja Untung Program
Prizes for buyers who do the transactions in the merchant (as a participants), or using Mandiri EDC. For sellers, they have the opportunity to be included to the national lucky draw.
Belanja Hoki/ Dagang Hoki Program
Co-promotion with the ITC Group for the merchant and the buyers who transact in ITC by using Mandiri Debit and also a reward program for the building management.
# MIB Transactions & Users
1
,3
5
2
1,7
52
1
,8
7
1
1
,581 1,268
48,946
59,573
70,953
84,935
102,829
-25,000 50,000 75,000 100,000 125,000
-500 1,000 1,500 2,000
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 # of Transactions # of Active Users
543,972
643,334
706,304
2012 2013 2014
5
6
,2
6
6
6
5
,8
3
5
73
,699
85
,82
3
7
9
,8
5
0
9,235
10,601 11,385
12,616 12,773
-3,000 6,000 9,000 12,000 15,000
-20,000 40,000 60,000 80,000 100,000
6
0
,6
7
6
63
,323
6
6
,8
5
1
7
3
,3
2
4
81
,046
84
,675
91
,504
96
,268
10
5,1
92
10
8,4
34
11
8,7
88
12
3,8
33
13
0,1
58
131
,857
27.7% 28.6%
27.6%
28.3%29.6% 29.6%
29.8% 30.2%
30.9% 31.8%
31.7% 31.3%
31.2%31.8%
20% 22% 24% 26% 28% 30% 32%
30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000
4Q 20
10
1Q 20
11
2
Q
2011
3Q 20
11
4Q 20
11
1
Q
2012
2
Q
2012
3
Q
2012
4
Q
2012
1Q 20
13
2Q 20
13
3Q 20
13
4Q 20
13
1Q 20
14
Retail to Total Loans
Buildi g ou high ield usi ess i Mi o & “ all…
Retail to Total Loans
Micro Credit Business Banking Consumer
Finance
27
(Rp Bn) Micro Credit
20,677
28,205 7,528
Q1 2013 Growth Q1 2014
YoY 36.4%
(Rp Bn)
49,320 57,371
8,051
Q1 2013 Growth Q1 2014 YoY
16.3%
Consumer Finance (Rp Bn)
38,437 46,281
7,844
Q1 2013 Growth Q1 2014
YoY 20.4%
Strong Microfinance Growth
200 300 502
687 697 600
800 800
878 928
1,027 1,028
10
152 480
710 760
751 738
2008 2009 2010 2011 2012 2013 1Q '14
Branch Unit Kiosk
271 430
562 694
815
889 910
2008 2009 2010 2011 2012 2013 1Q '14
Customers (000)
Network
# Of New Customers
73
,566
79
,50
0
76
,32
5
94
,855
74
,03
7
11
0,0
00
12
1,0
07
146
,359
12
6,5
09
14
0,0
64 13
1,7
15
147
,825
138
,747
16
0,6
20
136
,196
16
2,1
81
140
,886
1Q '10
2Q '10
3Q '10
4Q '10
1Q '11
2Q '11
3Q '11
4Q '11
1Q '12
2Q '12
3Q '12
4Q '12
1Q '13
2Q '13
3Q '13
4Q '13
1Q '14
13, 500 14 ,268 15 ,52 3 16 ,466 17, 779 18, 764 20, 113 20 ,919 22 ,81 8 24, 092 26, 135 27
,357 26,995 26,690
3
,957 3,964
3, 97 9 3 ,949 3, 887 3 ,777 3, 679 3, 571 3, 47 1 3 ,365 3, 312 3,
240 3,181 3,172
6
,374 6,398
6 ,708 6, 861 6, 995 7 ,143 7, 412 7 ,753 8, 20 6 8, 386 8, 958 9
,374 9,781 10,030
3,589 3,575
3,7613,910
4,2964,245
4,4924,590
5,0355,025
5,1955,303 5,620 5,557
2,826 3,454
3,492 4,200
5,115 5,829
6,593 6,609
7,209 7,486 7,905
9,013 10,218 11,083
447 698 791
873
928 964
1,016 1,037 1,010
966 927
904
809 840
0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000 37,500 40,000 42,500 45,000 47,500 50,000 52,500 55,000 57,500 60,000 4 Q '1 0 1 Q '11 2 Q '1 1 3 Q '1 1 4 Q '11 1 Q '1 2 2 Q '12 3 Q '1 2 4 Q '1 2 1 Q '1 3 2 Q '13 3 Q '1 3 4 Q '1 3 1 Q '1 4 Other Auto
Credit Cards Payroll Loans Home Equity Loans Mortgages
…as ell as Co su e le di g, hi h ose
16.3%
Y-o-Y as Auto Lending Remains Strong
Loan Type
Growth (%)
Y-o-Y
Q-o-Q
Other
(13.09%)
3.77%
Auto Loans*
48.04%
8.46%
Credit Cards
10.59%
(1.12%)
Payroll Loans
19.61%
2.56%
Home Equity Loans
(5.75%)
(0.29%)
Mortgages
10.78%
(1.13%)
Total Consumer
16.32%
1.36%
Quarterly Consumer Loan Balances by Type
Consumer Loan Growth by Type
Rp57.4 tn
29
14,058 13,451 13,502 15,918 17,255 17,124 19,559 18,838 18,886 18,824 19,054 16,924 14,846 14,292 13,336 12,986 13,944 13,606 15,676 14,856 15,626 16,989 17,672 17,755 19,272 11 .46 % 10 .00 % 9.22% 9 .1 % 9 .8 % 9.4% 10 .4 % 9.5% 9.4% 8.6
Q1 Total NPLs of Rp7.34tn with Rp556bn in write-offs
NPLs (Rp tn)
1Q (Rp tn)
NPLs (%)
Corporate 2.64 0.04 1.58%
Commercial 1.04 0.08 0.90%
Small 1.61 0.21 3.48%
Micro 0.92 0.10 3.26%
Consumer 1.12 0.16 1.95%
Total 7.34 0.59 1.76%*
Non-Performing Loans by Segment
* Excluding loans to other banks.
Movement by Customer Segment (Rp Bn)
6.75
0.08
1.37
0.15
0.56
0.00
7.34
4Q '13 UG to PL DG to NPL Payment Write-Offs Other 1Q '14
Non-Performing Loan Movements (Rp tn)
–
Bank Only
31
-164
-5
159
54 19
345
181 17
465
158
35
236
163
-200 400 600 800 1,000 1,200 1,400 1,600
UG to PL DG to NPL W/O
Total Loans originated since 2005
Net
Upgrades(%)
/
Downgrades(%)
#1Q 2014 Details
Loan Background
Q
Balance
(Rp bn)
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
DG to
NPL
%
UG to
PL
%
Corporate
166,731
-
0.03
0.01
0.25
0.00
0.01
0.00
0.00
0.10
0.10
0.00
Commercial
116,526
0.25
0.15
0.05
0.27
0.24
0.05
0.10
0.01
0.08
0.09
0.00
Small
46,316
0.77
0.70
0.84
0.49
1.28
0.59
1.05
0.64
0.97
1.00
0.04
Micro
28,205
1.51
1.30
1.37
1.00
1.25
1.10
1.18
0.89
1.16
1.22
0.07
Consumer
57,371
0.32
0.24
0.25
0.07
0.28
0.18
0.17
0.07
0.35
0.41
0.06
Total
415,149
0.28
0.23
0.22
0.11
0.34
0.18
0.25
0.13
0.30
0.32
0.02
Q1 2014 annualized net downgrades of 1.2% on loans
originated since 2005.
# %
downgrades
and
upgrades
are quarterly % figures
R
es
tru
ctu
red
Loans
19.4 20.3 21.7 18.4 16.9 16.2 16.6 16.4 16.2 17.2 17.1 17.1 15.3 15.2 14.3 13.1 13.6 13.5 13.5 14.2 13.9 14.0 11.7 11.7 12.0 12.5 12.6 11.2
5
.0
7.0
9.0
11
.0
13.0
15.0
17
.0
19.0
21
.0
23
.0
4Q '05 4Q '06 4Q '07 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4Q '10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Decl
ini
ng Restr
uct
ured
Loans
Si
nce
2005
Ann
u
al
iz
ed
R
el
ap
sed
R
a
te o
f
R
es
tru
ctu
red
Loan
P
or
tf
ol
io
33
1.2
%
2.7
%
0.0
%
0.3
%
0.0
%
0.0
%
0.0
%
0.0%
0
.5
%
1
.0
%
1.5%
2.0%
2.5%
3
.0
%
Total Assets Rp63.0 tn
Bond Trading Volume Rp18.1 tn
Total Assets Rp18.7 tn
Total Loans Rp784bn
Total Financing Rp3.6tn
Total Financing Rp49.8 tn
Equity & FI Underwriting Rp1.3 tn
Annual FYP Rp611 bn
Net Interest Margin 11.22 %
Net Interest Margin 2.34%
Total Deposits Rp55.1 tn
Equity Trading Volume Rp18.3 tn
Fee Contribution Rp117.9 bn
ROA 2.82%
ROA 4.99%
ROE 18.21%
ROE 10.6%
ROE 64.8%
ROE 12.90%
ROE 46.88%
•Remain the leader in syariah financing
•Capital injection program over 3 years
•Cross-sell syariah products to Mandiri customers
•Expansion of business to fully utilize current capital base
•Cross-sell capital market services to broad range of Mandiri customers
•Refocus business toward higher fee income
•Provide end-to-end bank assurance business
•Continue to build cross-sell opportunities in various segments
•Bank assurance products complete our suite of consumer offerings
•Enhance operating model
•Improve risk management systems and IT
•Improve productivity
• Use Ba k Ma di i s
network and customer throughout Indonesia to develop multi-finance segment, especially in vehicle-ownership financing.
Enhancing synergies & values from subsidiaries
Investment Banking
Syariah Banking Insurance Niche Banking
Bank Sinar Harapan Bali
Multi-Finance
Mandiri Tunas Finance:
Total Financing YTD of Rp3.6Tn
35
Total Booking and the Breakdown for
Joint Financing and Non JF
Breakdown of Financing
405 539 806 1,1
01 1,3 70 1,3 64 1,2 45 1,3 55 1 ,353 1,6 09 1,4 20 2
,075 2,105 2,4
16
2
,871 2,678 3,290
309 306
351
372
350 422 342 312 373
486 396 401 372 345 289 232 208 61 79 118 99
118 109 84 67 60
72 49 56 56 76 80 70 Q 1 '1 0 Q 2 '1 0 Q 3 '1 0 Q 4 '1 0 Q 1 '1 1 Q 2 '1 1 Q 3 '11 Q 4 '1 1 Q 1 '1 2 Q 2 '12 Q 3 '12 Q 4 '1 2 Q 1 '13 Q 2 '13 Q 3 '13 Q 4 '13 Q 1 '1 4 Motorcycle Used Car New Car
Q1 2014 Performance
(Rp Bn)
Q1
2014
Q1
2013
Change
Loans 17,054 12,317 38.5%
Net Income (after tax) 55.9 39.2 42.8%
Approval Rate (%) 84.92 88.81 (4.4%)
Disbursement 3,562 2,533 40.6%
NIM (%) 2.34 3.23 (0.9%)
ROA (%) 4.99 4.51 0.5%
ROE (%) 46.88 28.59 18.9%
CER (%) 45.45 44.67 (0.8%)
NPL (%) 1.15 1.17 (1.6%)
375 566 852 966 1,146 587 302 78 257 576 884 761 1,054 1,110 1,016 523 1,506
398 341
425
606
694 1,306 1
,369 1,656 1,530
In 2013, Bank Mandiri Announced The acquisition of
InHealth to enrich its insurance services portfolio
37
69
2,8
31
1,0
23
,22
8
1,1
75
,24
0
1,1
18
,20
6
1,1
41
,89
6
5,501
6,242 6,314 6,262
6,094
5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400
-200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000
2009 2010 2011 2012 2013
Total Member # of Providers
36 78 47 107 120
203
811
1,073 1,203
1,410
0 20 40 60 80 100 120 140
-200 400 600 800 1,000 1,200 1,400 1,600
2009 2010 2011 2012 2013
Profit (Rp Bn) GWP (Rp Bn)
Leveraging our institutional, corporate, &
commercial customers
Providing solutions through our banking products to
InHealth healthcare provider
Cross-selling Mandiri products to InHealth members
We have over 700 institutional, 300 corporate, and 1,700 commercial customers with the potential to become members of InHealth• InHealth has 6,000 healthcare providers and recorded over Rp. 1 trillion in claims in 2013
• Bank Mandiri will leverage the hospital network as
I Health s pa t e to i ease t a sa tio s th ough
enhanced cash management products
• Bank Mandiri also will provide retail packaged products for
all the do to s as I Health s pa t e
InHealth got the premium payment of Rp. 1.4 trillion in 2013 from all the clients. Going forward, Bank Mandiri will
We are Preparing For Our Next Transformation
2009
2005
Market Cap: IDR 60 Tn Revenue Market Share: 8% Net Profit: IDR 2.41 Tn ROE: 10%Gross NPL: 16.3%
Market Cap: IDR 136.9 Tn Revenue Market Share: 13.4% Net Profit: IDR 9.22 Tn
ROE: 24.24% Gross NPL: 2.42%
2020
Top Bank In ASEAN
Market Cap: >IDR 225 Tn Revenue Market Share: 14–16% ROE: >25%
Gross NPL: <4%
38
2014
• Building a winning organization
• Delivering tailored proposition for priority segments
• Building alliances
• Strengthening risk management
•Wholesale transaction banking
•Retail payment & deposits
•Retail financing
•Business transformation
•Developing integrated Human Capital & IT
•Focusing on non-organic growth
1
stTransformation
2
ndTransformation
…But We Need to Co sider Growi g Beyo d the Ba k
•
Revenue Growth Q1 (Whole
Group): Rp1.6tn (15% YoY)
•
Q1 Profit from Subsidiary:
Rp639bn (13% of EAT)
•
Retail vs Wholesale : Rp 6.9 tn
vs Rp 4.8tn
Our Deal size has continued
to move higher
•
BSHB
Rp 40bn (200)
•
MTF
Rp250 bn (2009)
•
Inhealth
Rp 1.3 tn (2013)
Bank
& Group
Finding Business
Partners
M & A
•
JV with AXA (AMFS), Gross Written
Premiums Rp1.7tn, +14% YoY
•
JV withTunas Ridean (MTF), Total
Financing Rp3.6tn, 26% YoY
•
InHealth
partner BPJS
Ba k Ma di i s
2014 Corporate Guidance
Target 2014
1Q 2014 Realization
Gross Loan Growth (YoY)
16%-18%
20.1%
Low Cost Deposits
410 Tn
334.7 Tn
Net Interest Margins
~5.60%-5.70%
5.75%
Efficiency Ratio
<45%
41.8%
Gross NPLs
<2.10%
2.07%
Cost of Credit
~1.2%-1.3%
0.88%
# of New ATMs
2,500
–
4,000
-# of New EDCs
40,000
10,116
# of New Micro Outlets
300
(2)
# of New Conventional Branches
50
1
41
Operating Performance
42
Corporate + Institutional Banking:
Contribution Margin increased on provision
Rp bn
Rp bn
Performance to Date: 1Q 2014
Contribution Margin (Profit Before Tax) Strategies for 2014
1. Focusing on Anchor Clients
and penetrating through using
of Transaction Banking
2. Account Plan implementation
for top 100 Corporate Banking
Customers.
3.
P o ide o e stop se i e
solutio s fo usto e s
transactions and create new
business process to accelerate
the execution of Account Plan
including effective and
responsive Complaint
Handling.
4. Strengthen business alliance
with Mandiri Sekuritas to ease
customers in capital market
792501 268
211
1,349
208 1,557
522 1,075 393 1,088
1,375 1,557 1,106
824
954
1,403
1,717 1,138 416
1,187
1,385
1,311 1,144
1,011 1,035
1,438
1,829
2009 2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4
13.2%
1,557
3,326
3,910
3,569
Mandiri Sekuritas
fi a ial pe fo
a e
(Rp Bn)
43
Q1 2014
Q1 2013
Y-o-Y
(%)
Revenues
156
106
47%
•
Investment Banking
15
16
(5%)
•
Capital Market
83
55
50%
•
Proprietary
25
14
85%
•
Investment Mgt
34
22
50%
)
Operating Expenses
106
76
41%
Earnings After Tax
26
22
22%
Equity Transactions
–
bn
31,868
23,902
33%
SUN Transactions - bn
18,133
12,895
41%
Bonds Underwritten - bn
1,285
2,402
(47%)
ROA
4.2%
3.7%
12%
44
1.
Optimize Off-Shore Branches
as a regional treasury
transaction distribution
channel.
2.
Refocusing on retail FX
Transaction.
3.
Developing Sharia Custody.
4.Increasing our presence as
main correspondent bank in
Indonesia.
5.
Maintain NPL ratio with
effective restructuring and
joint effort with Business
Unit.
6.
Optimize off balance sheet
accounts through auction
and legal action.
7.
Joint planning session and
joint monitoring
implementation.
8.
Creates nation-wide vendor
accreditation.
Treasury, FI & SAM
•2010 – 2012 : Including collection from SAM and excluding International branches (except Cayman)
•2011 Including collection from Garuda Indonesia (non recurring)
421
1,003
113
1,307
82
1,389
4.26
455 724
3,091
1,159 1,548 1,389
348
1,338 389
1,163
1,396
316
1,247 954
911
1,660
263
1,540
1,660
2,371
1,765
2009 2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4
(10.3%)
4,848
1,382
6,094
Performance to Date: 1Q 2014
Contribution Margin (Profit Before Tax) Strategies for 2013
Rp bn
Rp bn
5,605
Commercial Banking:
Strong revenues from Assets
1. Support Bank Ma di i sWholesale
Banking vision as an Integrated Wholesale Bank through sophisticated, customized and complete services leading to
increased revenue through Wholesale Deposit generation and Fee Income. 2. Increasing profit and market share
th ough i easi g e isti g usto e s
share of wallet, increasing revenue
f o e usto e s a d a agi g NPL s.
3. Provide the best total business solutions for commercial customers by developing products and services including quality bundling of
products, quick service and competitive pricing.
4. P o ide ui k a d eas se i es fo
small business customers by increasing distribution channels in
la k spot a ea a d i p o i g s all
business model and process
5. Effective Alliance in units based on customer base in Commercial and Small segment, especially in developing value chain business.
Performance to Date: 1Q 2014
Contribution Margin (Profit Before Tax) Strategies for 2014
Rp bn
Rp bn
45
1,227156
325
264
1,445
468
976
923 939 1,010
1,776 1,833
976
946 1,176 1,314
2,024 1,800
1,166 1,174 1,057
1,907
1,511
1,094 1,420
1,677
2,159
1,519
2009* 2010** 2011 2012 2013 2014
Q1 Q2 Q3 Q4
* incl CM of Small Business & BSM
**in June 2010 Decline due to PSAK50&55Implementation
(46.7%)
6,662
4,449
4,709
5,058
Commercial Banking :
Stronger Platform & Improved Distribution Capability
46
Expanding Scope of Distribution, 2014
Solid & Stable Source of
Low Cost Funds
Product Q1
2014
Q1
2013 Growth
Demand
Deposit 9.24 15.31 (39.6%)
Rupiah 4.59 9.71 (52.8%)
FX 4.66 5.59 (16.7%)
Saving
Deposit* 0.93 1.62 (42.6%)
Total CASA 10.18 16.93 (39.9%)
Total Funding 15.82 24.37 (35.1%)
Rp Tn **
CASA Ratio = 64.3%
Funding from Java & Bali = 70.1% of total funding
Sumatera Loans = Rp 16.8 tn
Funds = Rp 3.4 tn
Kalimantan Loans = Rp 6.3 tn Funds = Rp 0.9 tn
Eastern Loans = Rp 2.7 tn Funds = Rp 0.4 tn
Java and Bali Loans = Rp 90.5 tn Funds = Rp 11.1 tn
* Business Savings Product ** excl. BB
Business Banking :
47
BBC
BB Floor
Medan
Makassar Banjarmas
in Surabaya Semarang
Denpasar Bandung
Pekanbaru
Palembang B.Lampung
Pontianak
Samarinda
Manado
Palu Jayapura
Balikpapan Batam
Jambi Pematang siantar
Padang
Bekasi Jakarta
Solo Tangerang Bogor
BBC : 46 BB Floor : 95 BB Desk : 95
Mandiri Business Lounge : 68
Expanding Scope of Distribution, 2014
Solid & Stable Source of
Low Cost Funds
Product Q1
2014
Q1
2013 Growth
Demand
Deposit 1.85 3.35 (44.6%)
Saving
Deposit* 2.16 1.23 75.5%
Total CASA 4.02 4.58 (12.3%)
Total
Funding 5.18 5.46 (5.1%)
Rp Tn**
CASA Ratio = 77.5%
Funding from Java & Bali = 58.7% of total funding
Sumatera Loans = Rp 12.7 tn
Funds = Rp 0.9 tn
Kalimantan Loans = Rp 6.7 tn Funds = Rp 0.7 tn
Eastern Loans = Rp 5.6 tn Funds = Rp 0.5 tn
Java and Bali Loans = Rp 21.3 tn
Funds = Rp 3.0 tn
•Business Savings Product
48
Str
ong
gr
o
wth fr
om
Bank
Sy
ari
ah
Man
di
ri
6.3% 6.3% 6.6% 6.2% 6.2% 6.4% 6.6% 6.0% 5.9% 6.9% 7.5% 6.9% 6.9% 7.0% 7.3% 7.1% 7.3% 7.2% 7.3% 8.1% 4Q '07 4Q '08 4Q '09 1Q '10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 12.4% 13.5% 13.0% 12.4% 13.0% 12.3% 12.5% 12.7% 12.7% 12.0% 12.1% 12.1% 12.3% 13.3% 13.2% 13.2% 13.0% 11.5% 12.0% 12.2% 12.4% 12.3% 12.4% 12.1% 12.0% 11.1% 5.4% 5.4% 5.3% 5.3% 5.7% 6.2% 5.9% 5.8% 5.6% 4.7% 4.9% 5.0% 5.1% 5.0% 5.5% 5.4% 5.2% 4.5% 4.7% 4.5% 4.5% 4.6% 4.0% 4.0% 4.1% 4.4% 10.31 13.28 16.06 17.65 19.87 21.44 23.97 27.09 30.01 34.41 36.73 37.44 39.93 41.82 44.50 46.30 48.40 49.70 50.46 49.82 4Q '07 4Q '08 4Q '09 1Q '10 2Q'10 3Q'10 4Q'10 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 Fi na n ci ng 91.1% 89.1% 83.1% 83.9% 85.2% 86.3% 82.7% 84.1% 88.5% 86.3% 86.2% 87.2% 92.2% 93.9% 93.9% 95.6% 94.2% 91.3% 89.4% 90.3% FDRSy
ari
a
h
Fi
n
an
ci
ng
(R
p
tn)
Ne
t
In
ter
es
t M
ar
gi
n
&
Cos
t of
Fund
s
Fi
n
an
ci
a
l P
er
for
mance
(R
p
bn)
Yo ACoF NIM
49
1.
Continue to develop retail
payment solutions for top
retail industry value chains
and business clusters in order
to increase low cost deposit
and fee-based income
2.
Develop customer education
to further increase usage of
new retail products (e.g.,
pre-paid) as well as e-channel
transactions in order to
i
ease usto e s lo alt
and balances.
3.
Continue to develop
integrated
branding, marketing strategies
and comprehensive
distribution strategy
(ATMs, Branches, EDCs
located at optimal locations)
Micro & Retail Banking:
Rapidly growing our high margin business
Contribution Margin (Profit Before Tax) Strategies for 2014
1,126
761 981 965 1,237
3,252 855
583
842 1,081
1,391 449
877
1,033 1,170
1,867 722 899
1,311
1,242
2,259
2009 * 2010* 2011 2012 2013 2014** Q4 Q3 Q2 Q1
*Including Small Business **Resegmentation
4,167
162.9%
845
3,522
1,109
1,890
3,585 333
3,252
3,152 3,120
Performance to Date: 1Q 2014
Rp bn
Rp bn
4,458
6,753
50
Consumer Finance:
Significant growth in spread and fee income
1.
Develop clear portfolio
strategy, targeted to key
customer segments
2.
Differentiate acquisition
strategy by markets
3.
Increase existing sales
executive productivity
4.
Strengthen Consumer Loan
organization structure to
support the achievement of
business target, internal
portfolio growth and the
increasing proportion of
market share
5.
Focusing in branch as main
channel acquisition for credit
card and personal loan
6.
Increasing alliance with other
Business Units to support the
achievement of business
targets
Performance to Date: 1Q 2014
Contribution Margin (Profit Before Tax) Strategies for 2014
Rp bn
Rp bn
252 476
496
770 728
392 355
455 486
715 705
413
526 531
729
576
489
474
693
772
525
2009 2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4
2,535
(46%)
1,926
2,205
490
302
187
605
212
392
2,987
51
Supporting
9,564
3,528
5,411
7,681
Net Interest Income Fee-Based Income Overhead Expenses & Others
Pre-provision Operating Profit
1Q 2014 operating profit increased by 14.7% from 1Q 2013
on higher NII
1Q 2014
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions
1Q 2013
Rp billion
Up 14.7%
8,065
3,273
4,641
6,697
Net Interest Income Fee-Based Income Overhead Expenses & Others
Pre-provision Operating Profit
Rp billion
Committed to Improving Shareholder Value
Reduce Cost of Funds
Improve Assets Yield
Diversify into Fee Income
Reduce Provision/Loan
Improve Cost Efficiency
Leverage on cash generator
(wholesale) to accelerate growth
Diversity into fee income
Competitive,
sustainable
returns, with
above-average
rates of growth
Business Strategy
Strategic
Alliances
Support Strategy
Strengthen leadership in wholesale
transaction banking
Comprehensive financing &
transaction solutions
Holistic relationship approach for
leading Indonesian institutions
Build #1 or #2 positions in key retail
financing segments
Win in mortgage, personal loan &
cards
Become a major player in
micro-banking
Champion Syariah in Indonesia
Be the retail deposit bank of choice
Win through differentiated
customer experience and
targeted propositions
Deploy innovative payment
solutions
20,40% market share in
Corporate & IB lending*,
13,27% in Commercial lending*
3,026 Corporate customers
Target of 16% growth in
Wholesale funding & 21% in fees
# of Credit cards: 3.27 Mn
# of Debit cards: 11.59 Mn
# of Prepaid cards: 3.65 Mn
# of Mortgages: >172,000
Building on relationship with 16.2
million retail customers and
employees and suppliers of
Corporate/Commercial businesses
Target 40% of total loan
Pillar 1
Pillar 2
Pillar 3
We Focus on 3 Main Pillars
54
…a d Offe I o ati e Pa
e t “olutio s
55
E-Moneyis the re-branding of prepaid Mandiri cards launched in October 2012.
Can be used for Toll-road Transactions (Jabodatabek), Parking (ISS Parking), Bus (Trans Solo & Trans Jogja), Fuel